Pending home sales rebound in August, led by big gain in the West
Pending home sales increased more than expected in August following July's decline, the National Association of Realtors said on Thursday.
The pending home sales index climbed 1.6 percent in August to 107.3. Compared to last year, contract signings jump 2.5 percent.
“It is very encouraging that buyers are responding to exceptionally low interest rates,” Lawrence Yun, NAR chief economist, said in a statement. “The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.”
In August, all four major regions reported an increase in contracts from July, with the biggest gain in the West, which grew 3.1 percent to 96.4 -- an 8 percent increase from one year ago. Pending sales rose 1.4 percent in the Northeast and South, and climbed 0.6 percent in the Midwest.
The rebound is largely attributed to low mortgage rates, which helped to stimulate the sluggish market.
“With interest rates expected to remain low, home sales are forecasted to rise in the coming months and into 2020,” Yun said.
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